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Business FinancingMade Simple

Guide Calculators Resources Get the Toolkit

Business FinancingMade Simple

Guide

1. Introduction to Business Financing: Why This Matters 2. Understanding Your Business Financial Statements 3. Key Financial Ratios: What Banks Look At 4. Cash Flow Management: Why Profit Doesn’t Equal Cash 5. Understanding Credit and Building Business Credit 6. The Financing Menu: Loan Types, Lenders, and How Pricing Works 7. Understanding Collateral and Loan Structures 8. The Application Process: From Request to Funding 9. Working With Your Banker: Building a Strong Relationship 10. Conclusion: Your Path Forward

Calculators

DSCR Calculator Loan Payment Calculator Cash Conversion Cycle Calculator

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DSCR Calculator

Debt service coverage ratio: basically, whether your cash flow can cover the loan payment. A lender reads this as your cushion, not your grade.

Annual EBITDA

Total annual debt service

Build EBITDA from your financials

Net income

+ Interest

+ Taxes

+ Depreciation & amortization

1.32×

0.00–1.00 Insufficient1.00–1.25 Marginal (bank floor)1.25–1.50 Regional standard1.50–2.00+ Excellent

$420,000 EBITDA ÷ $318,000 annual debt service

How lenders read it

Below 1.00 The business can’t cover its payments from operations.
1.10–1.15 The minimum floor at most large national banks.
1.25 The standard benchmark at most regional banks.
1.50 and up Excellent coverage; qualifies for premium pricing.

Real Banker Tip

A DSCR of 1.20 backed by consistent history is worth more than a 1.40 with erratic cash flow. Banks lend against patterns, not peaks.

The full explanationChapter 3: Key Financial Ratios

This is an estimate to help you think it through, not financial, legal, or lending advice. Talk to a banker or advisor before you decide. Full disclaimer

Business FinancingMade Simple

A free guide to business financing, written from the banker’s side of the desk.

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The guide

1. Why financing matters
2. Financial statements
3. Key ratios
4. Cash flow
5. Business credit
6. The financing menu
7. Collateral & structures
8. The application process
9. Your banker
10. Your path forward

Tools

DSCR Calculator
Loan Payment Calculator
Cash Conversion Cycle
Resources

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© 2026 IK Group, a division of Moriah OC Inc.Educational content, not financial, legal, or lending advice.